EXHIBIT 3-A

Overview of Legal Lots of Record Documentation

Water demand for the Cal-Am Main System related to legal lots of record and general plan build-out has been analyzed by the District several times since the District was formed, although not in-depth since the year 2006. This report summarizes the various analyses performed.

A “Legal Lot of Record” is defined as a lot resulting from a subdivision of property in which the final map has been recorded in cities and towns, or in which the parcel map has been recorded in Parcels and Maps or Record of Surveys. Not all legal lots are buildable.

1979 MPWMD Report to the California Coastal Commission

In March 1979, the District prepared a report to the California Coastal Commission titled “Available Water Supply and Demand, Monterey Peninsula, California” which examined growth and available water supply. Using existing data from 1975, demand was estimated for the year 2000, as well at final build-out.

Working with staff from each of the jurisdictions, the District developed demand estimates. Each jurisdiction estimated potential residential and commercial growth and participated in an extensive usage survey to determine demand per residential unit and per square foot of commercial space. The results are presented below:

Estimated Demand for Cal-Am Main System

(Acre-Feet)

Jurisdiction	1975 Actual	2000 Estimated	Full Build-Out Est.
Carmel	896	1,257	1,367
Del Rey Oaks	217	382	382
Monterey	5,002	10,296	10,872
Pacific Grove	1,979	3,077	7,142
Sand City	56	813	1,219
Seaside	2,141	3,903	7,774
Unincorporated County	4,668	5,778	15,998
Airport District	n/a	176	176
TOTAL	14,959	25,683	44,930

Estimates exclude demand from private wells and the Seaside municipal water system. There was no attempt to reflect future conservation or the development of non-potable substitute sources. The Cal-Am system did not include Water West which delivered 127 acre-feet to 384 connections in 1978.

1989 MPWMD Study

Utilizing the July 1988 EIP Associates report titled “Estimates of Housing and Employment at Buildout Within the Monterey Peninsula Water Management District” the District developed the following estimate of water for new growth which became the basis for the 1990 Final EIR Water Allocation Program:

Water Needed to Satisfy Potential New Growth

Within Cal-Am’s Service Area

(Acre-Feet)

Jurisdiction	Full Build-Out Est.
Carmel	314
Del Rey Oaks	61
Monterey	2,054
Pacific Grove	612
Sand City	946
Seaside	646
Unincorporated County	1,297
Airport District	117
TOTAL	6,047

This represented a significant revision in the long-term view of what the Peninsula might look like at build-out, particularly in terms of the City of Monterey and the unincorporated County.

1998 Land Systems Group Report

In 1998 the Land Systems Group was engaged to examine vacant legal and buildable lots within the Cal-Am service area, and determine water demand based on type of use designated by the local jurisdiction while adhering to any constraints each jurisdiction may have placed upon them. In addition, historic data were examined to determine the potential water needs of anticipated remodels in the ensuing ten years. Results were not broken down by jurisdiction.

Water Requirements for Legal Lots of Record

(Acre-Feet)

Vacant Lots by Zoning	Lots	Water Required
Single Family Dwellings	688	196.8
Multi-Family Dwellings	538	72.1
Commercial/Industrial	556	419.8
Other	1	0
Total Vacant Lots	1,783	688.6
Anticipated Remodels
Residential	3,765	109.2
Commercial	513	83.6
Total Remodels	4,278	192.8
Total	6,061	881.4

The 688.6 value for vacant lots was subsequently revised upward to 729.9 acre-feet by LSG and incorporated into their 2000 report described below. This study did not examine General Plan build-out.

1999 Jurisdictional Survey

In 1999, the jurisdictions were asked to provide the District estimates of water demand for build-out through 2020. Both current general plan and jurisdictional planning studies were utilized. Legal lots of record and future growth were not distinguished separately. The estimates were at the reconnaissance-level, and resulted in the following:

Reconnaissance Level Estimates of 2020 Water Needs

(Acre-Feet)

Jurisdiction	Year 2020 Additional Need
Carmel	405
Del Rey Oaks	196
Monterey	767
Pacific Grove	531
Sand City	300
Seaside	406
Unincorporated County	893
Airport District	74
TOTAL	3,573

2000 Land Systems Group Report

The Land Systems Group was engaged to perform a Phase II analysis to better examine vacant legal and buildable lots within the Cal-Am service area, and determine water demand based on type of use designated by the local jurisdiction while adhering to any constraints each jurisdiction may have placed upon them. Each jurisdiction, with the exception of the unincorporated County, provided aerial orthoimagery to allow analysis of the parcels. The study was expanded to also include vacant lots on improved parcels. Lots meeting the definition included at the beginning of this report, plus lots meeting any of four exemptions, including, for example, maps filed prior to March 1972 and subsequently approved or subdivisions that were exempt from map requirements, were included. This study did not examine General Plan build-out. The results are shown below:

Water Requirements for Legal Lots of Record

(Acre-Feet)

	Lots	Water Required
Vacant Lots on Vacant Parcels	1,783	729.9
Anticipated Remodels	4,278	192.8
Vacant Lots on Improved Parcels	630	243.6
Total	6,691	1,166.3

A draft final report was received by the District in August 2000, but was not adopted by the District because the results did not include estimates for the City of Monterey and the unincorporated County.

The Land Systems Group did further analysis and presented a revised report in June 2002. That report included estimates for the City of Monterey, but did not resolve the unincorporated County values. Hence, that study was also not finalized. The June 2002 results are presented below:

Water Requirements for Legal Lots of Record

(Acre-Feet)

	Lots	Water Required
Vacant Lots on Vacant Parcels	1,783	729.9
Anticipated Remodels	4,278	192.8
Vacant Lots on Improved Parcels	736	288.2
Total	6,797	1,210.9

2004-06 Future Water Needs Study

In August 2004 the District’s technical advisory committee (TAC), representing each of the local jurisdictions, received recommendations from their City Councils and confirmed General Plan build-out requirements. The information was submitted to the District and a future water needs estimate was developed by District staff in September 2005 and presented to the District Board in May 2006. The TAC remained involved in the process throughout the process. The demand estimates were in addition to existing uses or then-permitted projects, and included legal lots of record. The estimates also included a 20% contingency. Reinvested toilet retrofit credits were also accounted for – this resulted from District Ordinances 70 and 90 which allowed a jurisdiction to “borrow” against a future water allocation – an amount totaling 12 acre-feet.

Estimated Long-Term Water Needs by Jurisdiction

Based on General Plan Build-Out

(Acre-Feet)

Jurisdiction	General Plan Build-Out
Carmel	288
Del Rey Oaks	48
Monterey	705
Pacific Grove	1,264
Sand City	386
Seaside	582
Unincorporated County	1,135
Airport District	138
TOTAL	4,545

The District’s policy advisory committee (PAC) rounded the amount to 4,500 acre-feet and the District included such amount in its May 4, 2007 letter to Andrew Barnsdale for use in the EIR process for the Coastal Water Project. In that letter, the District identified replacement demand as 12,500 AFY and future needs as 4,500 AFY. The replacement amount was based on the District’s Technical Memorandum 2006-02. However, the replacement amount included 2,227 AFY for replacement water for the Seaside Groundwater Basin and 762 AFY to replace water lost due to sedimentation of the Los Padres Reservoir.

2008 Cal-Am Update of Projected Water Supply Needs and Solutions

On March 27, 2008 Cal-Am gave a presentation titled “Update of Projected Water Supply Needs and Solutions.” At that time, Cal-Am utilized the General Plan build-out demands from the District’s 2006 study. Their identified replacement supplies required, however, were only 6,510 AFY inclusive of 46 AFY for Laguna Seca Subarea replacement needs. At that time they identified 3,119 AFY of “current replacement projects” including conservation, reduced system losses, golf course reductions, and so on that are no longer included in their capacity planning for their 2012 application A.12-04-019.

Cal-Am Coastal Water Project Final Environmental Impact Report

The October 2009 Coastal Water Project Final Environmental Impact Report, Section2.3.2.1, utilized the District’s 2006 study results for estimated future annual water demands expected to result from buildout of the general plans. This was shown as Table 2-4 of the FEIR. However, page 2-13 of that FEIR states that legal lots of record represent 1,181 AFY and cites Cal-Am’s 2006 Urban Water Management Plan (UWMP) referencing a 2001 District analysis as the source. The District does not certify that the 1,181 AFY value is valid. In fact, it was cited from an interim period between the Land Systems Group Phase II reports of August 2000 and June 2002 discussed under “2000 Land Systems Group Report” above. The District does not recommend continued use of this number. Instead, the District will examine the results of the “2004-06 Future Water Needs Study” background data and attempt to break out legal lots of record and present those results at the February 12, 2013 Board meeting.

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